The situation in the cryptocurrency market has not really changed over the last few weeks, with the majority of assets currently in a temporization as we approach the monthly close of May, which in the last two years was quite negative with regard to results. As summer approaches, we will have a wait-and-see market that will resume in force when the school year starts in 2023. In this new crypto spot this weekend, we will identify the levels to watch and the bias to Garden.
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The cryptocurrency market has made a remarkable bearish reintegration
Since ours previous crypto point of the weekendOn May 14, the cap confirmed the bearish reintegration of a major resistance that it had managed to overcome a few weeks earlier. In this context, bias two would initially be quite bearish as the buyers failed to hold above the $1.147 billion. But is this a signal confirming a strong bearish leg for the coming months?
In light of the current price situation, the lower technical level of $1.034 billion will need to be watched very closely. Previous resistance between August 2022 and March 2023, the price has yet to fully retrace by coming to trust this level. Thus, the market’s reaction must be followed closely if the price returns there. A bearish break of this level will increase the chances of a return to the 2022 lows.
Nevertheless, if the price manages to respond to the increase at such a level, this will demonstrate the interest of buyers to expose themselves to this market, which could infer a potential increase. Of course, to hope for a resumption of the upward trend in the market, the capitalization must regain the 1,140 billion dollars.
Altcoins are still in trouble
Regarding altcoins, the situation has not changed since last week, as the price is still at the lower limit of the range where the price has developed for several months. The goals mentioned two weeks earlier are thus still valid, as the technical situation is identical.
A move below the lower limit would bring altcoins back to the $320 billion level not seen since the market’s sharp rise in the first weeks of 2023. However, a rebound is likely. happen if bitcoin and ether don’t decide to turn lower. In this context, we will have to keep our eyes on the range’s pivot level of $363 billion. As long as it does not recover, it will be difficult to have a bullish bias.
For bitcoin dominance, the situation has been the same for several weeks: the price is below its major resistance, having blocked dominance several times since 2021. For now, as long as the price moves below this level, The bias to have is rather bearish with a decline in dominance that may occur in the coming months with a return, initially, to 46.85% and then 45.47%.
What is interesting to note is the strength of bitcoin’s dominance, which has never been so important over the past three years. This comes in a context where risk-enabled assets are left behind, favoring the return of capital to bitcoin over altcoins. Moreover, the turbulence in the banking sector is for some investors an interesting argument to try to push the price of bitcoin to higher levels.
This partly explains the strength of the dominance and the inability of altcoins to break out of the lower limit of the range. Developing in contact with its upper limit for several weeks, liquidity was not poured into altcoins, which partly explains the decline in April and May. But is it over for altcoins? Will Bitcoin be able to sustain this momentum? It seems interesting to take an interest in the ETH/BTC pair to try to see more clearly.
Ethereum is still underperforming
For Ethereum, vis-à-vis Bitcoin, the situation is quite complicated. Although the asset has been able to develop in a wide range since 2021, the fluctuation in the price has retreated in recent months with ether in difficulties against the king of cryptocurrencies.
Currently, the price is moving below a resistance of 0.069BTC, represented by the red zone. As long as the price moves below this level, Ethereum will continue to move into an underperforming situation. However, if he manages to overcome it, he will take the direction of the technical level, which is located at 0.0719BTC.
Currently, the bias on Ethereum is bearish and as long as it does not regain 0.0719BTC, this bias should be maintained. In these first five months of the year 2023, it is clear that bitcoin dominates the market, putting aside both ether and altcoins, which explains the lack of strength of the latter as well as the absence of the famous “alt season” that many were waiting for.
DeFi cryptocurrencies are in turmoil
For decentralized finance cryptocurrencies, despite a particular attraction for shitcoins in recent weeks, it is clear that capitalization has failed to recover as a majority of altcoins have fallen. As a result, this puts the sector and the interest that investors may take in it into difficulty.
After missing the pivot point of $46 billion, the price took a bearish direction and is dangerously close to the $40 billion, a technical size level where the price will have to return to hope for a bullish recovery of the sector. If it fails, it will likely see a continuation of the bearish leg with a theoretical target of $32.7 billion.
At the moment, nothing is decided, but given the current state of the course, the bias to have is rather bearish. To hope for a trend reversal, in addition to the resumption of the pivot, the capitalization must also overcome the 52.6 billion dollars.
Here we are at the end of this weekly update for the cryptocurrency market. Following the agreement in principle reached to raise the US debt ceiling, it is possible that the market may temporarily return. So next week will be one to watch closely. However, given the technical situation of the price, the bias to favor is quite bearish, we have seen that Bitcoin still maintains its dominance and that Ethereum is still in difficulties, which in no way favors a buying momentum for altcoins. .
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